Market Expectation of Fed Rate Hikes in 2026 Appears 'Somewhat Aggressive' -- Market Talk

Dow Jones13:50

0550 GMT - Current market conviction around Federal Reserve interest-rate hikes in 2026 appears "somewhat aggressive", says UBS Global Wealth Management CIO Mark Haefele in a note. UBS GWM continues to recommend exposure to short- to medium-term duration quality bonds. The combination of a new Fed regime under Chairman Kevin Warsh, hawkish projections and a wide dispersion of views implies a higher bar for near-term action in either direction, Haefele says. "In our view, this points to an extended period of policy on hold, with meaningful adjustments more likely once the task force process is complete, and the Committee has greater clarity on the economic outlook." Money markets price in approximately 38 basis points of Fed rate hike this year, according to LSEG. (emese.bartha@wsj.com)

 

(END) Dow Jones Newswires

June 19, 2026 01:50 ET (05:50 GMT)

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